Soybeans Rise Most in a Week as Rebound in Global Economy May Spur Demand

By Jeff Wilson -
Apr 6, 2010

Soybeans rose the most in a week on
speculation that an end to the global recession will boost
demand for the oilseed to make food and animal feed.

Economies will recover at various speeds, led by China and
India, the Organization for Economic Cooperation and Development
said. The Asian countries are the world’s biggest consumers of
vegetable oil made from soybeans. U.S. payrolls in March rose
the most since March 2007, signaling a rebound in the job
market.

“The world recovery is going to increase demand for
soybeans more than people expect,” said Tim Hannagan, an
analyst at PFG Best Inc. in Chicago. “People don’t want to be
sellers before the start of the U.S. planting and growing
seasons.”

Soybean futures for May delivery gained 8.5 cents, or 0.9
percent, to $9.445 a bushel on the Chicago Board of Trade, the
biggest increase since March 29. The commodity has dropped 9.9
percent this year.

On March 31, the price fell to $9.305, the lowest level for
a most-active contract since March 16.

“We held above last week’s low the past two days and that
encouraged some short-covering” by speculators unwinding bets
on lower prices, Hannagan said.

The crop in the U.S. was valued at $31.8 billion last year,
second only to corn, government figures show. The U.S. is the
world’s biggest soybean exporter.